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Global macro overview for 22/11/2018

According to information provided by the news agencies, representatives of the European Union and the United Kingdom reached an agreement on the preliminary text of the deal on a joint operation in the environment after Brexit scheduled for March next year.

Negotiations on the preliminary content of the Brexit agreement have been successfully concluded and the future of the agreement is currently dependent on the representatives of the other 27 Member States who will take part in the EU summit this weekend. Prime Minister Theresa May is due to go to Brussels before the summit to ensure that the deal can be finalized. The fragments of the agreement emphasize "deepened" customs cooperation between the European Union and Great Britain, construction of a unitary customs territory, willingness to replace the backstop (conditional UK exit with the EU) with more satisfactory solutions and the need to identify The EU has an independent UK trade policy. However, there are many indications that the solution regarding the border with Ireland has still not been found, which is one of the main bones of discord.

Reports after 11:30 am GMT also confirmed Donald Tusk informing that the agreement on future relations was "substantially agreed" provided that it was approved by the leaders of individual EU states.

Let's now take a look at the GBP/USD technical picture at the H4 time frame after the news was made public. The market spiked up towards the technical resistance at the level of 1.2882 and broke through it. The new local high was made at the level of 1.2928, but the price suddenly returned to the level of 1.2866 and this is the current level. The momentum has broken above its fifty level, so the bullish move up is being supported now. Please notice, the stochastic indicator is bouncing from the oversold level as well.